GLONGHUI, January 12 | CICC released a report stating that the total power generation of nuclear power units operated and managed by CGN Power Group increased 8.03% year-on-year to 228.3 billion kilowatt-hours, and total feed-in power increased 7.95% to 24.1 billion kilowatt-hours. The bank believes that the Mainland approved the construction of a new nuclear power unit on the last working day of last year (December 29, 2023), indicating that the Mainland recognizes the value of nuclear power as a source of clean baseload power, and it is expected that CGN will continue to develop into a leading operator. Currently, the company has 11 units approved and under construction. The bank expects 1 to 2 units to be put into operation every year for the next five years. In addition, the company plans to carry out 7 material replacements and overhauls in the first quarter of this year, compared to 6 in the first quarter of last year. CICC pointed out that since CGN Electric Power's power generation for the fourth quarter of last year fell short of expectations, it lowered its profit forecast for last year by 8.9% to 10.9 billion yuan, and also kept the company's profit forecast unchanged. It is estimated that next year's profit will reach 14 billion yuan. The bank maintained the company's “outperforming the market” rating and raised its target price for H shares by 10% to HK$2.6. It believes that the company can see optimistic profit and dividend growth, stable returns, and that the valuation appeal continues to increase due to the approval of nuclear power projects to raise valuations.